Stocks that are dependent on interest rates, like names in the Financials sector, are cooling off. This past week’s bond rally created opportunities in these companies. I’ve identified four pullback stocks, impacted by recent news, that have upside potential — and more in today’s stock market recap.
In the stock market recap, global stocks are mostly higher today as investors await economic data on the U.S. economy.
The Consumer Sentiment report gave investors an indication that inflation could be transitory because of temporary factors. This caused the bond market to rally and interest rates to drop.
This is a huge week for economic data. The Producer Price Index, Industrial Production and Retail Sales reports come out on Tuesday. These reports will give us a better understanding of how much inflationary pressure there is, whether industrial production is feeling it, and how it’s impacting retail sales. Remember, retail sales make up two-thirds of the gross domestic product.
The biggest report of the week comes out of the Federal Open Market Committee meeting and announcement scheduled for Wednesday. This week is all about interest rates and inflationary pressures. We should be able to better gauge inflation and learn if the Fed will alter stimulus or interest rate suppression.
SVB Financial Group (Nasdaq: SIVB) is a diversified financial services company. SIVB operates 30 offices around the world through its Global Commercial Bank, SVB Private Bank, SVB Capital and SVB Leerink segments.
SVB has a one-year return of 167.85%. It pulled back about 8% from this past week’s all-time high and is near its 50-day moving average. This stock could pop around these levels and continue its overall upward momentum.
I’ve identified one more Financials sector stock, an Industrials name and a leading golf equipment manufacturer that have also experienced pullbacks recently.
In today’s video, you’ll learn the Fed data that will move markets this week… whether the bond market is prone for more upside… the top sector to watch right now… and the top 4 stocks pulling back.
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